Hi, I'm a bit confused regarding what steps to take to answer the following question:
In 8 years, a new library is being opened. Expenses are estimated to be $52,000, payable at the end of each month. If all funds earn 14.4% compounded monthly, how much money needs to be invested today, to be able to support the library in perpetuity?
I have no idea what the first step is. I know it's something to do with 8 years but not sure what to do with it. I tried doing N=12*1000=12000, I/Y=14.4, P/Y=12, C/Y=12, FV=0, PMT=52000, PV=X however the answer I get for PV is wrong because I feel like I'm missing the initial step.
I could be completely wrong or misinterpreted the question so any help or clarification would be amazing. Thanks.